- Anatoly Aksakov predicts a decline in the importance of traditional banks with the rise of central bank digital currencies.
- Testing of Russia’s digital ruble started in August 2023, causing apprehension among local banks.
- The Association of Russian Banks reaches out for clarity on the digital currency system and its implications.
Russian financial expert, Anatoly Aksakov, has expressed that the increasing prominence of central bank digital currencies, like the digital ruble, might lead traditional banks to reassess their roles in the financial world.
Aksakov, who isn’t a fan of Bitcoin, voiced his thoughts at the AIF Media forum. He suggested that as blockchain technology merges more with financial systems, conventional banks might see some of their classic roles evolving or even vanishing.
This sentiment has been further emphasized by the steps Russia is taking with its digital currency. Since the initiation of the digital ruble’s trial run in August 2023, there’s been rising unease among Russian banks about how this new currency might reshape the financial sector. Addressing these advancements, Aksakov mentioned that the Bank of Russia has capped daily transactions for the digital ruble to 200,000 rubles (approximately $2,000). His insight on this move highlights an intention to gently steer the populace from dependency on standard banks to a framework directed by the central bank.
The growing tension in Russia’s banking world is palpable. Recently, the Association of Russian Banks sent a letter to the Bank of Russia. In it, they expressed a desire for clear information regarding compensation linked to the emerging digital currency system. Additionally, they advocated against making digital ruble accounts compulsory for the Russian citizens.
Adding to the conversation, Olga Skorobogatova, the Bank of Russia’s premier deputy governor, offered a glimpse into the possible future. She believes that to retain their customers, banks will need to up their game by rolling out improved loyalty schemes. She is optimistic that this will increase the range of non-cash payment alternatives for consumers, ultimately working to their advantage.
The changing landscape isn’t just limited to Russia. Colombia’s central bank has also suggested placing limits on CBDC transactions to ensure that traditional banks remain the go-to for storage and transaction services. It’s clear that the world is on the cusp of a significant shift in how it views and uses money
